Sonoco Announces Price Increase for Paperboard Tubes and Cores

Rhea-AI Summary

Sonoco (NYSE: SON) announced a price increase of a minimum of 6% for all paperboard tubes and cores, effective June 10, 2022, in the U.S. and Canada. This decision comes in response to ongoing market tightness and inflationary pressures, particularly from rising paperboard prices and higher labor costs. Doug Schwartz, Division Vice President, emphasized the company's commitment to quality and service amidst these challenges. Sonoco is the largest producer in North America for these products, which cater to multiple industries including paper, plastic film, and textiles.

Positive

• Sonoco is the largest producer of paper-based tubes and cores in North America.
• The price increase may help offset rising costs from inflation and maintain profitability.

Negative

• The announcement indicates ongoing inflationary pressures and market tightness affecting costs.
• Higher labor rates and raw material prices may impact future margins and pricing strategies.

HARTSVILLE, S.C., May 09, 2022 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada on or after June 10, 2022.

“Ongoing market tightness and additional inflationary cost pressures from rising paperboard prices, our primary raw material, along with higher labor rates, make this increase necessary,” said Doug Schwartz, Division Vice President and General Manager, North America Tubes and Cores. “Despite these supply chain pressures, we remain committed to maintaining the quality and service that our customers are accustomed.”

Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, plastic film, textile, tape and specialty markets. For more information about Sonoco’s complete line of paperboard tubes and cores or to learn more about current pricing, please visit the Company’s website www.sonoco.com or contact the Company at 800-377-2692.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer, industrial, healthcare and protective packaging. With net sales of $5.6 billion in 2021, the Company has 22,000 employees working in approximately 300 operations in 32 countries, serving some of the world’s best-known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2022 as well as being included in Barron’s 100 Most Sustainable Companies for the third consecutive year. For more information, visit www.sonoco.com.

FAQ

Why is Sonoco raising prices on paperboard tubes and cores?

Sonoco is increasing prices by a minimum of 6% due to ongoing market tightness and inflationary cost pressures from rising paperboard prices and higher labor rates.

When will the price increase for Sonoco's products take effect?

The price increase will take effect on shipments in the U.S. and Canada on or after June 10, 2022.

What are the main products affected by Sonoco's price increase?

The price increase affects all paperboard tubes and cores produced by Sonoco.

How does Sonoco's price increase impact their market position?

As the largest producer of paper-based tubes and cores in North America, the price increase may help Sonoco maintain profitability amid rising costs.

What is Sonoco's commitment amidst inflationary pressures?

Despite the inflationary pressures, Sonoco remains committed to maintaining the quality and service customers expect.